Forex Flash: Key day for European data – Societe Generale
FXstreet.com (Barcelona) - There is a host of European data out today notes Kit Juckes, Global Head of Currency Strategy at Societe Generale.
Numbers include Spanish Q4 GDP, the Swiss KOF leading indicator, Swedish confidence, Norwegian unemployment, UK money supply, Euro Zone consumer and biz confidence, and the ECVB's bank lending survey. However, all focus will be on US GDP, ADP and FOMC meeting.
Juckes believes that the US data will likely be a catalyst for further risk asset buying and for EURUSD to break free. He feels that a 0.7% annualised growth rate in Q4 will be seen as a reason for the Fed to keep policy super-easy for (almost) ever. However, coming after 3.1% Q3 growth and with the ADP data likely to show acceleration in private sector hiring, the US economy isn't as weak as the headline GDP print suggests, and is improving. He finishes by writing, "With rates too ¡ low, the dollar will be soft against such currencies as are allowed to rally, notably the Euro. And in turn, EURGBP will probably head higher (again)."
Numbers include Spanish Q4 GDP, the Swiss KOF leading indicator, Swedish confidence, Norwegian unemployment, UK money supply, Euro Zone consumer and biz confidence, and the ECVB's bank lending survey. However, all focus will be on US GDP, ADP and FOMC meeting.
Juckes believes that the US data will likely be a catalyst for further risk asset buying and for EURUSD to break free. He feels that a 0.7% annualised growth rate in Q4 will be seen as a reason for the Fed to keep policy super-easy for (almost) ever. However, coming after 3.1% Q3 growth and with the ADP data likely to show acceleration in private sector hiring, the US economy isn't as weak as the headline GDP print suggests, and is improving. He finishes by writing, "With rates too ¡ low, the dollar will be soft against such currencies as are allowed to rally, notably the Euro. And in turn, EURGBP will probably head higher (again)."
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